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Group Companies

This query is : Resolved 

26 March 2009 Is service tax and excise payable on transaction between group companies(like shared manpower resources)?

please quote decided case law if any.

26 March 2009 yes. because legally both the entities are seperate from each other and all the provisions of TDS, Service tax will apply acocrdingly.

Also, service tax is payable at the time of credit to the account of party (i.e. not on collection basis but on accrual basis wef 01.04.2008) in case of Associate enterprise.



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